Senator Murphy Archives - Transportation For America

Senate Finance Committee considers a trust fund stopgap, with long-term funding unclear

The Senate Finance Committee Thursday will take up a proposal from Chairman Ron Wyden (D-OR) to keep the Highway Trust Fund solvent through Dec. 31 with a $9 billion transfer from the general budget. The needed revenue would be raised by increasing the allowable tax on heavy trucks and four accounting maneuvers unrelated to transportation.

Chairman Wyden’s stopgap proposal would prevent the projected August insolvency of the nation’s key infrastructure fund and buy time until after the November elections, when Congress could consider a longer-term fix to the beleaguered trust fund.

Unfortunately, the proposal does not have bipartisan support. The top Republican on Senate Finance, Senator Orrin Hatch (R-UT), has indicated he would like the trust fund fix to rely more on spending cuts. Senator Bob Corker (R-TN), who is co-sponsoring a proposal to raise the gas tax with Senator Chris Murphy (D-CT), called the proposal “a complete sham” .

However, with the clock ticking toward an end of promised federal payments to states for their transportation spending, it is the only proposed stopgap on the table that would avoid idling thousands of workers and stalling key projects throughout the country. Senator Barbara Boxer (D-CA), chair of the Senate Environment and Public Works Committee, urged her colleagues on the Finance Committee to pass Wyden’s proposal. “I’m here to send an SOS to Congress because we are facing a transportation government shutdown,” Boxer today said at a press event.

Wyden’s proposal relies on accounting changes over ten years to amass the “savings” that would be transferred immediately from the general fund to cover the next several months of the trust fund outlays. The largest change ($3.7 billion) would require faster disbursement – and collection of taxes owed – on retirement savings of deceased account holders.

The only transportation-related source comes from raising the cap on the surcharge placed on especially heavy trucks, from $550 a year to $1,100. Set to take effect June 30, 2015, it would be the first change to the so-called heavy vehicle use tax since 1984 and is expected to raise up to $1.4 billion over the next 10 years.

Wyden told Transport Topics that he expects Republicans to offer several amendments at the committee hearing, set for 10 a.m. Thursday. “They indicated informally some rough ideas but that’s why we have opened the process,” Wyden said.

In the House, Chairman Dave Camp (R-MI) of the Ways and Means Committee, with jurisdiction over the Highway Trust Fund, has said, “There is no way tax hikes to pay for more spending will fly in the House.” Camp plans to mark up an extension of the transportation program and Highway Trust Fund after the July 4 Congressional recess.

In an encouraging bipartisan move, Senators Corker and Murphy last week proposed raising the gas tax 12 cents over two years, and offsetting that increase by making some current tax breaks permanent. Corker has said the offsets could allow other Republicans to support the proposal because it would not violate Grover Norquist’s Americans for Tax Reform pledge.

Any such long-term solution for transportation funding – which we at Transportation for America certainly support – would have to come through Wyden’s Finance Committee, presumably after a stopgap such as that on the table for tomorrow’s hearing.

Raising the gas tax also would have to pass muster with the White House. In comments Monday, Administration officials did not rule out a gas tax hike but reiterated that corporate tax reform is their preferred pay-for.

“The Administration has not proposed and has no plans to propose an increase in the gas tax,” said White House spokesman Matt Lehrich. “It is critical that we pass a [transportation] bill that not only avoids a short-term funding crisis but provides certainty and lays the groundwork for sustained economic growth. So we appreciate that members on both sides of the aisle continue to recognize the need for a long-term infrastructure bill, and we look forward to continuing to [work] with Congress to get this done.”

Here, you can read a Description of the Chairman’s Mark, and the Joint Commission on Taxation’s Score (JCT Score) of the proposal.

Support the Senate’s bipartisan plan to raise the gas tax

A bipartisan pair of Senators says it’s time to raise the gas tax. Let the rest of the Senate know if you agree.
Take action.

After months of hearing from mayors and business leaders and citizens and people of all stripes who are worried about the looming bankruptcy of our transportation fund, a key Senate committee this week at last is taking up a temporary fix to the trust fund for the next six months. But Congress still must find a long-term solution to save our nation’s transportation fund.

As we wrote about last week, two courageous senators have introduced a bipartisan – yes, bipartisan – proposal to save the trust fund for the long haul. Senators Chris Murphy (D-CT) and Bob Corker (R-TN) proposed raising the gas tax 12 cents per gallon over two years. It would be the first increase since Bill Clinton was in office and gas cost around a buck a gallon.

Can you send a message to your Senators asking them to throw their support behind this proposal? (Supporters in CT and TN: You can send a message of support to your Senators as well.)

Without new money to save the highway trust fund from insolvency, federal contributions for important transportation projects in your community would stop as soon as August and could shut down completely for the next year.

Some in the Senate are still talking about settling for a temporary bailout, rather than face our crumbling transportation program head-on.

Over the last five years, Congress has scoured the couch cushions to find $50 billion from general revenues to plug holes in the transportation trust fund. Meanwhile, the need for investment is growing as our population grows and infrastructure ages. Not only has inflation eaten away a third of their value, but gas tax receipts also have dropped with gains in fuel efficiency and a decline in the miles driven per person.

Most members of Congress have been afraid even to mention the possibility of tax increases, but as Senator Corker said, “If it’s something worth having, then it’s something worth paying for.” We couldn’t agree more. As our recent post on support for gas tax increases at the state level shows, voters may be more accepting of higher transportation taxes than conventional wisdom suggests.

Senators Murphy and Corker deserve great credit for their leadership and courage to propose a real fix to the transportation funding crisis.

Let’s let the rest of the Senate know that safe roads and bridges, better transit, and speedier commutes are things worth paying for.

In the meantime, T4America will keep fighting for more reforms to the system to ensure that states are held accountable for their spending and that more money flows to the local level where it’s needed most. But without any new revenue, there’s no need for accountability: Projects and plans will sit on the shelf.

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What do you think about raising the gas tax? Feel free to let us know in the comments.

Favorable responses and coverage for the bipartisan Senate plan to raise the gas tax

As soon as Senators Murphy and Corker introduced their bipartisan plan yesterday to raise the gas tax by 12 cents, supportive statements starting flowing in and media outlets quickly picked up the news.

The day before the news broke, USA Today’s full editorial board weighed in on the issue and offered their preferred solution for rescuing the nation’s transportation fund: “Raise the gas tax.” They couldn’t have thought they’d see action quite so soon, but the very next day, as we reported, Senator Murphy (D-CT) and Senator Corker (R-TN) responded with a proposal that would do exactly that, raising the gas tax 12 cents to help provide “the trust fund with the stable source of income it so desperately needs.” More from the editorial:

The best way to deal with declining gas tax revenue happens to be the simplest way: Raise the gas tax. … The days of higher fuel taxes being a “third rail” of politics (touch it and you die) are long gone. In recent years, seven states have either raised their own gas taxes or imposed other fees that raise revenue. The political fallout has been minimal.

The proposal quickly made headlines around the country, from the biggest papers down to local blogs. Here’s a quick look at just a few of the responses to the Senators’ leadership.

RollCall
Gas Tax Is Imperative to a Robust Highway Bill | Commentary
With federal highway funding about to run dry this summer, will Congress vote to increase the gasoline tax to refill the Highway Trust Fund? It seems a long shot, but a bipartisan agreement begins with two – and two senators have stepped forward.

The Business Journal
Ready for higher gasoline taxes? Road projects may come to a halt without it
The gasoline tax hasn’t been raised since 1993, so maybe it’s time for an update. Plus, it seems fair to make users of the nation’s road pay for improvements. Congress has violated this principle for the past couple of years, taking $50 billion from the federal government’s general fund — thereby raising deficits — to make up for shortfalls in the Highway Trust Fund.

Washington Post
Bump at the pump? Senators propose a 12-cent hike in federal gas tax
A bipartisan Senate proposal emerged Wednesday to rescue beleaguered federal transportation funding by raising the tax on gasoline by 12 cents a gallon.

Streetsblog USA
Senators Murphy (D) and Corker (R) Propose 12-Cent Gas Tax Increase
There are several proposals on the table to stave off the impending insolvency of the Highway Trust Fund (which pays for transit, biking, and walking projects too) in two months. Just now, two senators teamed up to announce one that might actually have a chance.

Associated Press
SENATORS PROPOSE 12-CENT GAS TAX INCREASE
Two senators unveiled a bipartisan plan Wednesday to raise federal gasoline and diesel taxes for the first time in more than two decades, pitching the proposal as a solution to Congress’ struggle to pay for highway and transit programs.

CBS News
A bipartisan push for higher gasoline taxes
The timing might seem a bit dubious, considering it’s the height of the U.S. driving season, and Americans are dealing with both geopolitical turmoil and the upcoming midterm elections.

MSNBC
A Republican who’s willing to raise the gas tax
To fix America’s crumbling roads and bridges, Tennessee GOP Sen. Bob Corker says he’s willing to do what’s become unthinkable for most congressional Republicans: raise taxes.

WBBJ Eyewitness News Channel 7 (Jackson, TN)
Corker proposes increase to gas tax
For the first time in more than two decades, federal taxes on gasoline and diesel could be raised.

Johnson City Press/Kingsport Time News (TN)
Corker proposes higher fuel tax to pay for repairs to highway infrastructure
U.S. Sen. Bob Corker pitched his legislation Wednesday to fix up the nation’s highway infrastructure by raising federal fuel taxes by six cents twice in the next two years and paying for the hike with provisions in the so-called “tax extenders” bill.

Chattanooga Times Free Press (TN)
Bob Corker eyes 12 cent gas tax to help shore up federal road funds
U.S. Sen. Bob Corker, R-Tenn., on Thursday proposed a bipartisan plan to raise federal gas and diesel taxes for the first time in more than two decades as an answer to long-standing funding woes threatening to stall the nation’s highway, bridge and transit programs.

The Daily Times (Blount County, TN)
Sen. Bob Corker pitches gas tax hike
Tennessee Sen. Bob Corker is part of a bipartisan plan to raise the federal gas tax by 12 cents over the next two years.

Laborers’ International Union of North America
“It’s Time to End the Pothole Penalty”
LIUNA applauds Sens. Murphy and Corker for their continued bi-partisan progress in the U.S. Senate to make our roads and bridges safer and strengthen our economy by addressing the failing Highway Trust Fund with a long-term, full-investment solution.

Senators unveil bipartisan plan to rescue the federal transportation program by raising the gas tax

Senators Chris Murphy (D-CT) and Bob Corker (R-TN) today announced their bipartisan plan to raise the nation’s gas tax by 12 cents over two years to rescue the nation’s Highway Trust Fund, which is headed for insolvency before the end of the summer.

Senators Murphy and Corker introduce their proposal to raise the gas tax by 12 cents and index it to inflation on Wednesday, June 18, 2014. Photo courtesy of Sen. Murphy’s office.

Unveiled at an event at the U.S. Capitol this morning, The Highway Funding and Tax Reduction Proposal would increase the federal gasoline and diesel taxes by 6 cents in each of the next two years for a total of a 12-cent increase. The taxes would then be indexed to inflation, so that transportation funding keeps in step with construction costs. (The federal gas tax has lost about a third of its purchasing power since it was last raised in1993.)

These two simple changes would provide funding to sustain current spending levels, plus inflation, over the next 10 years. The Murphy-Corker plan proposes to offset some of the increased costs to individuals by permanently extending a handful of tax breaks that benefit ordinary households.

Since 2008, Congress has transferred more than $50 billion in general funds into the Highway Trust Fund to maintain investment levels, and the fund’s spending is currently projected to outpace revenues by over $160 billion in the next decade. Just to have enough money to continue the program for next year would require finding an additional $18 billion before Oct. 1.

But now, for the first time in this Congress, a legitimate, bipartisan plan has been offered to solve the shortfall of the nation’s transportation trust fund. No temporary patches, no swapping funding between programs, no general fund transfer or accounting sleight-of-hand.

“Proposed short-term patches using accounting gimmicks have been all but shot down in both houses,” said T4America Director James Corless in our full statement released this morning. “Senators Murphy and Corker are showing real leadership – as well as concern for their constituents’ jobs and safety – by championing a long-term solution that recognizes the gravity of the situation and addresses it head-on. … The alternative is to allow our transportation system to crumble along with an economy hobbled by crapshoot commutes and clogged freight corridors.”

“By modestly raising the federal gas tax, we can address a crippling economic liability for this country—the inability to finance long-term improvements to our crumbling national infrastructure,” said Senator Murphy in the Senators’ joint statement this morning.

“I know raising the gas tax isn’t an easy choice, but we’re not elected to make easy decisions – we’re elected to make the hard ones. This modest increase will pay dividends in the long run and I encourage my colleagues to get behind this bipartisan proposal,” he said.

Senator Bob Corker, who certainly understands how important transportation investments are down at the local level as the former mayor of Chattanooga, TN, stated emphatically at the event that “if something is important enough to have, it’s important enough to pay for.”

“Congress should be embarrassed that it has played chicken with the Highway Trust Fund and allowed it to become one of the largest budgeting failures in the federal government,” he added in his official statement. “If Americans feel that having modern roads and bridges is important then Congress should have the courage to pay for it.”

As our recent post on support for gas tax increases at the state level shows, voters may be more accepting of higher transportation taxes than conventional wisdom suggests. And any move to stave off crisis and stabilize the federal program for the long term brings cheers from the local officials who represent home-state constituents.

“We certainly support Senator Murphy’s efforts to put our transportation trust fund on a sound footing,” said Lyle Wray, executive director of the Capitol Region (Hartford) Council of Governments in Murphy’s state of Connecticut. “We have seen two bridge closures in just the last two weeks on the Metro-North line, the busiest commuter line in the country. Repairing and replacing bridges is just the start of our communities’ needs. We have been doing all we can to stretch dollars and use debt financing, but we have gone as far as we can go without additional funding. Raising the gas tax is the best solution we see for stable funding for critical infrastructure in the near term.”

And in Franklin, TN, a southern suburb of Nashville, Mayor Ken Moore offered Sen. Corker — a prior mayor of Chattanooga — his support for the proposal.

As mayor of Franklin and chair of the mayors’ caucus of Middle Tennessee, I can say we have been supportive of raising the gas tax because we recognize this is what funds our highways and our transit, and we can’t allow our infrastructure to deteriorate. We have to stabilize the trust fund and provide consistent funding.

Middle Tennessee is the economic generator now for Tennessee, one of the fastest growing regions in terms of creating jobs. While that is a good problem, it creates a burden on our infrastructure. It’s important to make sure we have the certainty of funding so we can continue to support this economic development

As a mayor I can see the handwriting on the wall. Without this we will be tremendously challenged to avoid congestion and gridlock. The number one calls and emails I get are about traffic and congestion. I think voters will support it if they know it will go towards relief and supporting that economic growth.

So there you have it. The first legitimate, bipartisan transportation revenue proposal is on the table. Senators Murphy and Corker deserve great credit for their leadership and courage to propose a real fix to the transportation funding crisis.

We will have more on this proposal as we track its progress closely over the next few weeks and months, so stay tuned.

T4America statement in support of Senate proposal to rescue the federal transportation program with a 12-cent gas tax increase

James Corless, director of Transportation for America, issued this statement in response to the proposal from Sen. Chris Murphy (D-CT) and Sen. Bob Corker (R-TN) to save the highway trust fund from insolvency and restore stable funding through a 12-cent gas tax increase over two years:

“Our nation’s key infrastructure fund is rushing toward insolvency. Proposed short-term patches using accounting gimmicks have been all but shot down in both houses. Senators Murphy and Corker are showing real leadership – as well as concern for their constituents’ jobs and safety – by championing a long-term solution that recognizes the gravity of the situation and addresses it head-on.

A return to stable funding will ensure that our states and communities can repair aging roads, bridges and transit systems and build the infrastructure we need for a growing economy. The alternative is to allow our transportation system to crumble along with an economy hobbled by crapshoot commutes and clogged freight corridors.

Phasing in the gas tax increase over two years along with extended tax breaks will ease the transition for consumers, just as the ensuing investment in a sound, working transportation network will ease travel for workers and businesses alike.”